Are Australians losing their inheritance? Experts warn of rising will disputes

Blended families, big inheritances, and bitter disputes: it’s a recipe for drama that’s playing out in more and more Australian households. 

As we stand on the brink of the largest generational wealth transfer in our nation’s history, a new trend is emerging—one that could leave many Australians, especially those in blended families, unexpectedly cut out of their family’s will. 

The traditional ‘nuclear’ family is no longer the norm. In fact, more than a third of Australian families with children now fall outside that model, with about 12 per cent of children living in step or blended families. 

That means more people, more relationships, and—unfortunately—more opportunities for conflict when it comes to dividing up the family fortune.

Why are inheritance disputes on the rise?

Alun Hill, national practice director at Armstrong Legal, says the changing nature of families is at the heart of this growing problem. 

Changing family structures lead to more legal battles over estates. Image Source: Andrea Piacquadio / Pexels

‘With the rise in blended families, particularly involving second and third marriages, it is becoming increasingly common for a surviving spouse’s family to ultimately inherit the deceased’s partner’s assets at the expense of that partner’s children from their first marriage,’ he explains.

In other words, if you’re the child of a parent’s first marriage, you might find yourself left out in the cold if your parent remarries and doesn’t update their will—or if their new spouse inherits everything and then leaves it to their own children.

The result? More and more ‘disgruntled’ children are taking legal action, fighting for what they believe is rightfully theirs.

The numbers behind the drama

It’s not just a handful of families facing these issues. Baby Boomers are expected to pass on a staggering $3.5 trillion to younger generations over the coming decades. 

Combine that with the current cost-of-living and housing crises, and it’s no wonder that more people are willing to challenge wills in court. 

For many, an inheritance might be their only shot at owning a home or achieving financial security.

Who can actually make a claim?

You might be surprised to learn just how many people can contest a will in Australia. 

According to Justice Family Lawyers principal Hayder Shkara, the law recognises that while you can leave your estate to whoever you like, you also have a duty to provide for certain people—like your spouse or kids. 

But the list doesn’t stop there. Those eligible to make a claim can include:

  • Married spouses
  • De facto partners
  • Children (including adult children)
  • Stepchildren
  • Grandchildren
  • Members of the household who were dependent on the deceased
  • People in a close personal or domestic relationship with the deceased

Each state and territory has its own rules about who can claim and how, so it’s important to get advice that’s specific to your situation.

Common scenarios causing conflict

Some of the most frequent disputes arise when:

  • Children from a previous relationship are left out or receive a much smaller share than the surviving spouse or their children.
  • A new spouse inherits the entire estate and then leaves everything to their own children, cutting out the deceased’s children from a previous marriage.
  • Promises were made to family members about inheritances, but nothing was put in writing.

How to avoid a family feud

The good news? Many of these disputes can be avoided with some careful planning and open communication. 

Shkara recommends having a well-structured will, discussing your wishes with your family, and even including a statement of wishes to clarify your intentions. 

‘A well-structured will, open discussions with family members, and a statement of wishes can prevent many of these disputes before they arise,’ he says.

Hill agrees, adding that seeking legal advice from a specialist solicitor in your state or territory is crucial. 

‘They will be able to advise you of your obligations and how best to structure your will and your assets,’ he says. 

Baby Boomers passing on $3.5 trillion means more fights over estates. Image Source: Kindel Media / Pexels

‘Sensible estate planning can help to avoid the disputes, but it is difficult to plan for every conceivable situation. Unfortunately, some litigation is almost inevitable.’

As blended families become more common and significant wealth is transferred across generations, inheritance disputes appear to be on the rise. 

This evolving landscape raises important questions about how best to balance fairness, legal obligations, and family dynamics in estate planning.

What are your thoughts on the challenges that blended families face in inheritance matters? Have you or someone you know experienced difficulties with wills or estate disputes? How do you think families can approach these sensitive issues to minimise conflict? Share your experiences and perspectives in the comments below.

Also read: Daughter incensed as Mum gives away $20,000 inheritance to charity⁠—whose side are you on?

Abegail Abrugar
Abegail Abrugar
Abby is a dedicated writer with a passion for coaching, personal development, and empowering individuals to reach their full potential. With a strong background in leadership, she provides practical insights designed to inspire growth and positive change in others.

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